Industry News

Buyer confidence now fuels real estate

Real estate confidence bubble: Positive outlook keeps buyers buying

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It was all about interest rates. But now, it's all about interest rates–and confidence. Whether house-price appreciation will continue its growth to infinity and beyond, flat line for the foreseeable future or turn downward from a peak at the top of the charts now depends not just on interest rates, but also on the extent to which potential home buyers feel confident about their jobs, the economy and housing as an investment. The Conference Board today reported its index of consumer confidence held steady in May after a slight increase in April. Consumers have an overall positive outlook for the next six months, and their outlook on employment continues to show signs of improvement. But while consumer confidence is important to the real estate markets, it might not be as important as home buyer confidence, which remains at a frenzy in some places. Are home buyers confident about housing as an investment? Take a survey. Experts have observed ad naseum that rock-bottom mortgage i...